Social media ads: How much is too much?

“We sell ads, senator.” That was Mark Zuckerberg speaking at the US Senate way back in 2018, when Facebook as it was then known, was under scrutiny for a variety of issues; Zuckerberg was explaining how and why Facebook is free.

Cut to 2023, Zuckerberg’s public interactions have become memes, Facebook is still free while operating under the new conglomeration that is Meta, and they’re still running ads. A lot of ads.

Indeed, according to multiple sources, the vast majority of Meta’s earnings come from their ad business at a cool 113 billion USD in revenues in 2022, with Statista noting that in 2020, 97.9 per cent of Facebook’s earnings were from ads.

But as anyone who’s been on Meta’s flagship Facebook platform would have noticed, over the years, those ads have increased significantly in number and visibility, with pop-ups, banners, flash notifications and other ad formats dominating screens which were once home to song lyrics in various fonts, kitten videos, and the vaguely racist ramblings of distant relatives. 

All that is still there of course, but it seems that there’s content between ads, rather than the other way around. And the same holds true for practically every social media site one might visit today.

“The increase in ad clutter, especially during and after Covid-19, has impacted ad performance. When there are too many ads competing for attention, it can lead to ad fatigue and reduced effectiveness. Consumers may become desensitized, resulting in lower engagement,” notes Anmol Dang, AVP Media, FCB/SIX India.

The bad?

Sadhvi Dhawan, Group Media Director at Blink Digital, admits that in recent times, there has been a decline in completion rates for ads, particularly on platforms like Facebook, Instagram, and other short video platforms.

“However, this decline is primarily observed when the offering or hook of the proposition in the ad takes time to build or the ad formats are disruptive in nature. Ads that seamlessly blend with the platform's environment when speaking to customers in the desired language or begin with that which would immediately get their attention, like starting with RTB rather than the brand first, maintain their performance and do not compromise the overall user experience," she says.

Ads that align with the content consumption habits of the audience have higher engagement rates and effectiveness, says Dhawan, adding that also, timing plays a significant role in ad success. Presenting ads at the right moment, especially during users' times of need, increases the likelihood of a positive response.

Rammohan Sundaram, President – Integrated Media, DDB Mudra Group, believes there is an issue with user experience, to say the least. “However, we have to consider content and advertising together, with a classic case in point being Influencer marketing,” he says.

“Influencer marketing, when done right through genuine content creators, works wonders. However, I am specifically referring to content creators who are stars, not the other way around. For example, Aiyyo Shraddha delivers fantastic performances for some of the largest financial brands in the country,” elaborates Sundaram.

“How would you describe this approach? Content in between ads or the other way around? However, if you look at it, the creator has a great knack for crafting the script, which is then spun in a manner that resonates with her followers, resulting in a massive reach that social media has to offer. If done right, there is no harm in this strategy,” he says.

“The key aspect of ad campaigns is the mind metrics, like Top-of-Mind Awareness (TOMA) and recall for products or services. We need to ensure our branding campaigns address these crucial questions. While we have immediate support with BLS, we must consider its reliability,” says Dang, adding, “Consumer engagement and ad effectiveness depend on factors like relevance, targeting, and customer experience. Regardless of the number of views or impressions, if ads don't resonate with the audience, ROI may suffer.”

Dhawan points out that social media platforms like Facebook and Instagram have mastered the art of native advertising, seamlessly blending ads into their users' feeds. This strategy allows ads to be consumed as content, without causing any negative impact on the user experience.

“However, this approach might not work as effectively for news portals, where the abrupt display of interstitial ads during reading can be frustrating for users. Therefore, personalized and targeted advertising is crucial in these contexts, enabling users to make informed decisions while maintaining a positive overall experience,” she says.

The good!

“Today's consumers are more informed than ever before. They can distinguish between regular content and promoted content. However, despite this, I haven't observed any decrease in the time they spend using these platforms,” asserts Dang.

FCB/SIX, like many other agencies, uses Comscore to validate Monthly Active User data on Facebook, Instagram, YouTube, and more. Over the past year, the MAUs on these platforms have only increased. For example, in June 2022, YouTube had around 444 million MAUs, and Instagram had around 275 million. As of July 2023, the numbers have grown to 464 million for YouTube and 327 million for Instagram.

Moreover, as per FCB/SIX’s research, the average time spent on these platforms has consistently increased over time, as supported by the GWI Hootsuite India Digital Report. In 2022, the average time spent on social media per day in India was approximately 2 hours and 36 minutes, which saw an increase of 11 minutes compared to the previous year. As of 2023, the average time spent on social media has further risen to 2 hours and 50 minutes, showing a 14-minute increase compared to 2022.

“This growth aligns with the increasing number of internet users, indicating that these platforms are not losing users but welcoming new ones too,” says Dang, continuing, “Additionally, tech giants regularly introduce new content formats, such as YouTube's Shorts and Instagram's Reels. These innovations have been well-received by users. For instance, Instagram's new introduction, Threads, ensures users always have something fresh to engage with.”

Sundaram observes that India is full of supply and has less demand, despite the massive growth in digital spends. “It hasn't reached the point of being overwhelmed yet. So, I don't think that is the case today; however, tomorrow the situation might be different, and one has to wait and see how consumer engagement gets affected in instances such as these,” he says.

The Slightly Misunderstood

Dhawan says the advantage of digital advertising is the ability to target specific audiences, as across different apps, diverse targeting options are available. “However, some news apps lack non-demographic and non-geographic targeting, limiting their ability to fully understand consumer intent. As a result, consumers might feel disconnected and less engaged with ads displayed on such platforms, leading them to explore other apps where targeting is more tailored to their interests,” she says.

Changes in the way ads are presented can also impact user experiences. Users become accustomed to a platform's behavior, and when ad display undergoes significant changes, it may disrupt their overall experience. Careful consideration must be given to ad integration to ensure a seamless and non-disruptive user experience.

“To improve ROI and engagement, we must balance ad frequency and relevance. Currently, most of the brands run campaigns at a frequency of 3 to 5, but with more advertisers, clutter increases, reducing brand recall,” says Dang.

“In my opinion, we should reassess our campaign approach. Brand will unfortunately have to focus on increased frequency (within relevant TG) to cut through clutter, which unfortunately will only add to the costs for the advertiser, unless the brand comes up with a standout creative idea,” he adds, saying that one such example that comes to his mind is a dairy brand (Country Delight), who with their high frequency campaigns created a lot of recall and buzz and did cut through the clutter and stayed with the audience and that has what won them sizeable number of customers across markets.

“Brands have come to recognize the significance of focusing on better returns rather than solely on reach or impressions. Understanding the impact of digital marketing on sales, they prioritize driving tangible results. As a result, the return on investment (ROI) remains strong, and digital marketing is seen as a potent tool for driving sales, going beyond mere online branding activities,” notes Dhawan.

The Takeaway

Shrenik Gandhi, Co-founder and CEO, White Rivers Media, says that walled gardens, like Meta and Google, have become major players in digital advertising, controlling a huge chunk of the market with their closed ecosystems offering moderated access to data and audiences.

“The rise in ad content on social platforms has certainly had an impact on consumers but the user behaviour and expectations are also adapting synchronously with it. The dynamic ad market is witnessing significant changes, and companies are fighting hard as always. Ultimately demographic understanding and relevance play a crucial part and can change the way consumers interpret and respond,” he says.

The digital landscape is rapidly shifting and even the long dominant players are facing fierce competition from emerging rivals. “Meta continues to have strong ad consumption and viewability; however, a dicey economy and shuffling user preferences have now made marketers cautious to ensure a growth in ad revenue. Spot-on strategy and execution can be a game-changer for brands amidst any shifting dynamics,” adds Gandhi.

Dang is of the opinion that as long as these platforms continue to offer new and engaging content, user engagement will remain high. “They are also creating new advertising spaces for themselves. The ability to innovate or replicate features from other platforms has played a significant role in sustaining user interest. Overall, the continuous evolution and innovation by these platforms contribute to their continued success and user engagement,” he says.